Employing people for the first time

Transcription

1 Employing people for the first time Carla Davis Tax Manager & VAT Adviser Aaron Alcock Independent Financial Adviser

2 Overview Employer responsibilities HMRC Real Time Information (RTI) Books and records National minimum wage Other considerations Auto enrolement

3 Employer responsibilities: Calculating and deducting PAYE tax and National Insurance Contributions (NICs) Paying Employer Class 1 NIC Paying HMRC on time Making statutory payment such as SSP, SMP etc. Making student loan deductions Keeping accurate records Sending PAYE information to HMRC

4 HMRC Some questions you need to ask yourself: 1. Do I need to tell HMRC I am employing people? 2. When do I need to tell HMRC? 3. How do I tell HMRC?

5 Once you have registered with HMRC Set up your payroll Real Time Information (RTI) New Starters Leavers

6 Deadlines RTI submission due on pay day Penalties for late submission Number of employees Monthly penalty 1 to to to or more 400

7 Deadlines Due date for paying PAYE and NIC 19th of the following month unless you are making electronic payments then you have until the 22nd. Penalties for late payment Penalties are determined on the number of defaults in the tax year.

8 Record keeping requirements You must collect and keep records of: what you pay your employees and the deductions you make reports and payments you make to HMRC employee leave and sickness absences tax code notices taxable expenses or benefits

9 Record keeping requirements Records must be retained for 3 years HMRC have the right to come and check records If you don t keep full records, HMRC may estimate what you have to pay and charge you a penalty of up to 3,000.

10 Other methods of remuneration Other forms of remuneration include: Company Car Private fuel Gym Membership Expenses reimbursement: Mileage HMRC approved rated Subsistence There are tax implications

11 Employment Allowance What is it? Who can claim it? How much is it? Restrictions

12 National Minimum Wage The National Minimum Wage is the minimum pay per hour almost all workers are entitled to by law. It doesn't matter how small an employer is, they still have to pay the minimum wage. It is illegal not to pay the minimum wage when you should be doing.

13 National Minimum Wage From 1 October 2015 hourly rates are as follows Apprentices year olds year olds years old & over

14 Other Considerations 1. Need to check that people have a legal right to work in the UK. 2. May need to apply for checks in certain situations e.g. DBS check 3. Employment insurance 4. Contract of employment 5. Status

15 Auto Enrolment

16 Agenda Background What you need to do

17 Auto Enrolment : Why? Increasing proportion of population over 65 The Pension Commission highlighted four solutions Increase Taxes Save more Raise average retirement ages Accept pensioners will become poorer Auto Enrolment introduced in the Pensions Act 2008 receiving cross party support

18 What you need to do Find out your staging date Segment your workforce Eligible (Age 22-SPA & earning over 10,000) Non-Eligible (Age & SPA to 74 & 5,824-10,000) Entitled (Earn less than 5,824) Contribution basis Qualifying Earnings or Self Certification? Source a pension scheme Adhere to your on-going AE responsibilities

19 Any Questions?

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21 The content of this presentation is provided in good faith. Whilst we take great care to ensure the information contained within this presentation is accurate and up to date, no responsibility is accepted for any errors or omissions which may occasionally occur. The presentation has been prepared without taking into account any individual s objectives, financial situation or needs and no individual investment advice is given, nor intended to be given. No liability will be accepted in respect of any action you take or omit to take as a result of receiving this presentation. You should consider the appropriateness of the information you have received and we urge you to take independent investment advice prior to taking any action. Hart Shaw Financial Planning Limited is an Appointed Representative of Russell Ulyatt Financial Services Limited which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales Number Europa Link, Sheffield Business Park, Sheffield, S9 1XU A0176

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